Adjust new prices

June 27, 2018 in Inventory Control

Purpose

This procedure is used to enter and/or modify future prices for products. It is designed to be used for the fine tuning of new pricing after the bulk updating of prices via the Create New Prices function and/or the Upload New Prices tool.

Using this function, new pricing can be entered or changed on an individual product. The pricing itself can be entered manually or the the system can calculate new pricing based on the entry of inflation/deflation factors for a quick calculation of future prices.

Data Input

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Step 1 – Product

Price List

Select the Price List code for the price list you wish to adjust new pricing on.

Product

Enter the ‘Product’ that you wish to enter or adjust future pricing for. If required, you will also be prompted for the appropriate size to work on for the product selected.
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Step 2 – Inflation Factors

Rounding Factors (cents)

If you plan on using ‘Inflation Factors’ to calculate new pricing then you can enter an optional ‘Rounding Factor’ in cents at this prompt. This causes the ‘Apply Factors’ function to automatically round all generated prices up or down to the nearest multiple of the rounding factor. Therefore you can use it to round to the nearest 5 cents, 10 cents, 50 cents etc.

Price Method

Once again if you plan on using ‘Inflation Factors’ to calculate new pricing then you will need to select a ‘Price Method’ from the list available.

Note that if a starting cost/price does not exist in the system already and you choose a method that requires one i.e. a factor applied to ‘cost’ – NO change to the existing pricing will take place if the system does not find a ‘source’ to use for the calculation.

It should also be noted that for products with no existing pricing, a starting quantity of “1” is set for any future prices calculated.

  • Selected Product Groups Only – this is the default method and it can be left as the selected method when you want to enter/edit prices manually
  • Multiplication factor applied to each price level – this method inflates each individual price level by individual factors. For example:
    • New Price1 = Price1 x Factor1
    • New Price2 = Price2 x Factor2
    • etc.
  • Multiplication factor applied to price level (1) – this method inflates the base price (price level 1) by individual factors. For example:
    • New Price1 = Price1 x Factor1
    • New Price2 = Price1 x Factor2
    • etc.
  • Multiplication factor applied to replacement cost -this method inflates the replacement cost by individual factors. For example:
    • New Price1 = Replacement Cost x Factor1
    • New Price2 = Replacement Cost x Factor2
    • etc.
  • Multiplication factor applied to standard cost – this method inflates the standard cost by individual factors. For example:
    • New Price1 = Standard Cost x Factor1
    • New Price2 = Standard Cost x Factor2
    • etc.
  • Divide factors are the same concept as above, except using division and not multiplication
Price Levels Factors

You can set up an inflation factor for each price level you are using in the system.  Enter a multiplication/division factor e.g. a ‘1.1’ multiplication inflates prices by 10%. Some simple examples of ‘factor’ calculations below:

  • A ‘1.1’ multiplication would inflate a base cost/price of $100 to $110 (10% inflation)
  • A ‘0.9’ multiplication would deflate a base cost/price of $100 to $90 (10% deflation)
  • A ‘1.1’ division would deflate a base cost/price of $100 to $90.9
Apply Factors

Select whether you wish to apply the inflation factors to this product to automatically calculate new prices on the next screen. This is an optional entry, but if you have set a ‘Price Method’ and input ‘Factors’ to your price levels it makes sense to ‘tick’ this box so that the system completes a re-calculation of the prices for the next screen.
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Step 3 – New Prices

This screen will display any ‘Current Future Price’ details of the product selected using previously entered/calculated/uploaded pricing. If you opted to ‘Apply Factors’ in the previous screen, the ‘New Price’ section will display the newly calculated pricing for the product. If you did not apply any new pricing method/factors then the details shown in the ‘Current Future Price’ will be repeated in the ‘New Price’ section.

You may select any of the ‘New Price’ rows to manually adjust the details for each price level. You can also enter new price rows and add to the list shown.

Note that both pricing sections will also show the ‘Margin’ or ‘Markup’ for each price in each price level. If a price falls below the standard margin/markup set for the system/product group this will be highlighted on screen with the words “Below Std”.

Apply Date

Enter a valid ‘Apply Date’ indicating when you wish this set of new prices to become effective from. The End Of Day routine automatically applies these prices on that date, for use throughout the Sales Order Management system. Pricing can also be applied using the Manually Apply New Prices function.

Quantity

Enter the quantity price break for the product, in Sales Units as shown. Each row in the list represents a quantity price break for ‘Bulk’ pricing. You may add as many rows with pricing as required, as long as the quantity increases for each row you add to keep the pricing in ascending sequence. The use of such bulk quantity prices breaks is optional. Only one row is required to have pricing for a product.

Price Levels

Enter the sell price for each price level set up in the system as required. The margin/markup of the price entered will be displayed for each price you enter.

Once you have entered all the new prices you want, click Add to add the pricing in as a row on the list or Save to update the amended prices to an existing row on the list.
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